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Blockbuster back in administration

October 29th, 2013 by

Blockbuster UK Logo 2UK retailer Blockbuster has gone into administration for the second time this year as announced by it’s current owners, the private equity firm Gordon Brothers Europe.

The chain has endured a difficult 2013, first going into administration in January, blaming competition from online retailers and competitors such as Netflix and Lovefilm that allow instant streaming of films and TV shows.

Gordon Brothers Europe said in a statement that it had “striven to turn around the historically loss-making company by restructuring the business, investing significantly in strategic marketing activities and negotiating with the landlords of its retail outlets”.

It added: “The company also tried to develop a new digital platform but was unable to broker a licensing deal with Blockbuster UK’s parent company in the US. Regrettably, the months since the acquisition have also coincided with a period of poor trading performance across both rental and retail sales.”

In somewhat concerning turn of events for those who have preordered next gen consoles or games from the stricken retailer, we’re hearing that Blockbuster are refusing to comment on whether customer’s orders are currently safe. When questioned on their Facebook page, concerned customers are only given the response that they are to contact their store manager if the order was placed in a branch or alternatively to write to a postal address to find out whether their orders are safe or not.

UPDATE: Blockbuster has confirmed that it will not honour pre-orders for PlayStation 4 or Xbox One.

The chain has been breaking the news to concerned customers via its social media channels over the past hour after reports earlier today of the retailer’s impending move into administration.

“We are sorry that you will be disappointed and that we can’t fulfil any Xbox One or PS4 pre-orders at this time,” the chain explained via its official Twitter account.

“We appreciate and recognise the amount of messages about pre-orders. We’re sorry some of you haven’t received your calls yet. They’re happening as we type.”

Customers who pre-ordered a console in-store are being advised to visit the shop where they placed their order for assistance. Anyone who ordered a console through Blockbuster’s website will need to write to Blockbuster’s head office for help.

“Please visit facebook.com/BlockbusterUK for more information. Thanks.”

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3 Responses to “Blockbuster back in administration”
  1. Cracking stuff Matt. I fear the worst for Blockbuster this time. Sad news too for those that preordered next gen consoles with them.

  2. avatar munkimatt says:

    Yes, the preorder stuff really is secondary here, there’s over 2,000 jobs within the chain.

  3. avatar Adamski UK says:

    For those of us out in the sticks that max out at 4MB download speeds, the local Blockbuster offers a good alternative to streaming on demand content. It’s going to be very sad to see them go.

    Our local one has very helpful and knowledgable staff, which is what’s missing from the online providers….the personal touch.

    Having said that, you can bet I’ll be one of the vultures circling overhead looking for a bargain or two; yeah I feel,bad, but I’ve supported them for a long time!

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